578: 2024 Form 578 Refundable Credit for Electricity Generated by Zero-Emission Facilities (2024)
Oklahoma · Oklahoma Tax Commission · Used for tax years 2024
Oklahoma Form 578 calculates the refundable credit for electricity generated by zero-emission facilities. It subtracts the credit claimed as nonrefundable on Form 511-CR and applies an 85% refund rate to the remaining eligible credit.
Who files this form
Complete Form 578 if you are claiming the refundable Credit for Electricity Generated by Zero-Emission Facilities on your 2024 income tax return. You may be:
- The entity that originally generated the credit.
- A shareholder, partner or member to whom a pass-through entity allocated the credit.
Credits earned but not used, based on electricity generated during the tax year, may be refunded at 85% of their face amount.
Do not complete this form if you elected to carry the unused credit forward instead of receiving a direct refund. The carryover period may not exceed 10 years, and any credit remaining in the 10th year will be refunded at 85%.
When it's due
For the 2024 credit, a wind facility must have been placed in operation no later than July 1, 2017. This is a facility eligibility cutoff, not a filing deadline.
The form does not state a filing deadline.
What you'll need
Have these forms and details available:
- Your income tax return, including the name and Federal Employer Identification Number (FEIN) or Social Security number shown on it.
- Your total credit for electricity generated during 2024, or your allocated share of that credit.
- Form 511-CR, Column B, line 9a, for the amount claimed as a nonrefundable credit.
- If the credit was allocated to you, the name and FEIN of the pass-through entity that allocated it.
- The facility's renewable resource type: wind, or moving water, sun or geothermal energy.
How to file
- Enter your name as shown on your return and your FEIN or Social Security number.
- Select whether you originally generated the credit or received an allocation. If allocated, enter the pass-through entity's name and FEIN.
- Check the box for the facility's renewable resource type.
- On line 1, enter the total credit for electricity generated during the tax year, or your allocated share. Exclude carryovers from tax year 2013 or earlier.
- On line 2, enter the amount from line 1 claimed on Form 511-CR, Column B, line 9a as a nonrefundable credit.
- Subtract line 2 from line 1 and enter the result on line 3.
- Multiply line 3 by the 85% rate on line 4. Round to the nearest whole dollar and enter the result on line 5 and on the Refundable Credits line of your income tax return.
The text does not provide mailing instructions, an address or e-filing directions.
Common mistakes
- Including unused credit carried forward from tax year 2013 or earlier on line 1. The form specifically excludes it.
- Completing Form 578 after electing to carry the unused credit forward instead of receiving a direct refund.
- Entering cents on line 5. Round to the nearest whole dollar.
- Omitting the allocating pass-through entity's name and FEIN when selecting the allocated-credit option.
- Overlooking the overall cap for credits from water, sun or geothermal energy. No more than $500,000 may be allowed to offset tax or be refunded in a taxable year.
- Refunding or allocating more credit than a pass-through entity is entitled to receive.
Questions people ask
How much of my unused credit can be refunded?
The refund is 85% of the eligible credit's face amount. Subtract the nonrefundable credit claimed on Form 511-CR, Column B, line 9a from your total current-year credit, then multiply the result by 85%.
Can a pass-through entity allocate the credit to its owners?
Yes. If it does not claim a direct refund, a pass-through entity may allocate the credit to one or more shareholders, partners or members. The total refunded or allocated cannot exceed the credit or refund to which the entity is entitled.
Is there a cap for credits from water, sun or geothermal energy?
Yes. These credits have an overall cap of $500,000 that may be allowed to offset tax or be refunded in a taxable year. The form states that the full amount of statutory credit is available for tax year 2024.
What happens if I choose to carry the unused credit forward?
Do not complete Form 578 if you elected a carryover instead of a direct refund. The carryover period cannot exceed 10 years. Any credit remaining in the 10th year will be refunded at 85%.